Unit 6 - Growth & return Flashcards
Timeline - concept
It is a work calendar. Shows the activities to be performed with its start and end date and their priority or simultaneity
Timeline - what is it useful for?
✦Planning and control of activities: Times, milestones, simultaneity and priority…
✦Calculation of resource’s needs
Organization chart - Concept
It is the graphic representation of the hierarchy and responsibilities of an organization. It is the image of the formal structure
Organization chart - what is it useful for?
✦Define areas of responsibility and who will be in charge of each area.
✦Define coordination methods (contact between departments/workers)
✦Planning and control of each defined responsibility area, in combination with schedule, budgets….
Operational budget - concept
Forecast of all company income and expenses over a period of time
Operational budget - what is it useful for?
✦Calculation of resource needs for each of the areas (complements the organizational chart and the timeline)
✦Planning and control of activities (monitoring of strategic implementation, deviations and corrective actions)
Operational budget - components
1 Income 2 Variable costs 3 Fixed costs 4 Depreciation and amortization 5 Non-operating expenses
Operational budget - income estimate
✦Serviceable obtainable market (SOM)
✦Is a realistic estimate of the total sales figure we can obtain considering our resources
✦It is the estimated total sales figure.
✦Specifying volumes (units sold, contracts, number of customers, products in the range, etc.) and price (average price, unit price, price per customer segment, etc.)
Operational budget - SOM
calculation with traction metrics and growth hacking metrics
Operational budget - information sources:
- Budgets (prices, actual sales)
- Reference to competitors’ data
Operational budget (TAM SAM SOM)
✦TAM Total addressable market: Focus on Market size
✦SAM Serviceable available market: Focus on your technology
✦SOM Serviceable obtainable market: Focus on competition, countries, trends, my distribution channels
Human capital concept
“Abilities and qualities of people that make them productive”
Important tasks of HR management
✦ATTRACT & RETAIN: Includes recruiting, signing contracts, socialization, motivation
✦DEVELOPMENT: Includes training and development of career plans
✦REMUNERATION: Includes performance evaluation, and designing payment plan. Important the concept of equity (related to the concept of justice and fair treatment)
Critical aspects of human capital for start ups:
- ATTRACT & RETAIN workers: How to attract talent that is working at companies receiving a well structured (and probably high) salary?
✦Appeal to passion (chance to contributing to making a better world)
✦Attractive working environment
✦Economic incentives: substitute cash with future value: participation in value created
✦Work in employer branding - MOTIVATION: How to motivate workers without appealing to big salaries? (Independence, responsibility, Challenges, )
- TEAM BUILDING: How to create a fine tuned and cohesive team to cope with uncertainty inherent to starting up?
✦Clearly define and share company’s mission, vision and values: pillars of organizational culture
✦Empower workers
✦Flexibility: Adapt to worker’s needs - REMUNERATION: How to design attractive packages with limited resources?
✦Components: Base salary + variable pay (conditioned to performance i.e incentives, commissions, bonus…stock, stock options) + indirect pay (Not related to performance i.e health insurance, pension plans, life insurance, car… )
✦Flexibility (smartworking, working schedules..) working environment are key
Metrics or KPI by phases - development & validation
Objectives: To discover and to validate customers
Keys: Activation and retention (traction)
